January 14, 2010

UK milk prices show upward trend

In UK, 2010 has started on a more positive note, with two milk buyers increasing their prices so far.

Saputo, a dairy company has increased its prices in January by 0.75p/litre to 22.39p/litre, reflecting the improved mozzarella market. And AJ & RG Barber has become the first Cheddar cheese processor to increase its price this year, boosting payments by 1p/litre.

This could be a sign that the expected rise in the Cheddar market is starting to materialise and could lead to other cheese processors following suit.

However, the recovery of the commodity markets that started last summer will have to be sustained if only milk prices reached a similar level to those experienced at the end of 2008.